April 21, 2010
Earth Day: A Search for Companies Making a Difference with Their Customers
In anticipation of the 40th anniversary of Earth Day, I set out on a search to find ways to partner with my favorite companies to celebrate the day. I thought this would be a simple task—I was hoping to find unique and impactful ways to unite with brands to make a difference this Thursday. However, to my surprise, my search came-up short. I spent nearly an hour visiting the websites of over 25 brands that I regularly use and had a very hard time finding ways to join them on Earth Day!
I naively thought this would be quick search and easy find. All week I’ve seen companies running ads on TV touting their commitment to Earth Day (Wal-Mart and Honda just to name a few). These ads intrigued me and I wanted to find out how I, as a consumer, could partner with such companies in their efforts. But, it seems they forgot to include me this year (or at least did not make it easy for me to find out about how we can work together).
My initial instinct is to think shame on you brands for not making it easy for a willing and loyal customer to engage with you on Earth Day. Don’t all of you represent yourselves as forward thinking and sustainable companies? But, then I started to shift my thinking. Is it that fewer companies are engaging consumers on Earth Day because they are now focused on working with us throughout the entire year? While the optimist inside me would like to hope this is the case, the realist in me is not convinced.
I recognize that Earth Day is just one of the 365 days this year. I firmly believe it is more important for companies to focus on creating and implementing long-term sustainability programs that engage consumers throughout the year. However, Earth Day is a day to celebrate our environment and the world around us. Companies and brands find ways to engage us on just about every other holiday—4th of July, Valentines Day, our Birthdays—so why not find meaningful ways to engage us on Earth Day?
One company who has taken on this mentality is Aveda, a global beauty company. The company is actively partnering with consumers to celebrate “Earth Month” –with a particular focus on access to clean water. Aveda is offering its customers the opportunity to get involved through donations, limited edition merchandise and a national “Walk for Water.” All of these activities have been designed to educate and engage consumers. Thank you Aveda! (*I do not work for or with the Aveda Corporation.)
I know there are more companies engaging customers in Earth Day activities, particularly at the local level. My guess is that more activities will be posted on company websites on Thursday—in fact, I am just starting to receive some “Earth Day promotion” emails as I write this post. Please feel free to comment on more companies who are partnering with their customers in impactful ways this Earth Day (and hopefully throughout the year!).
April 19, 2010
Class of 2010—Show me an offer or show me your values?
Millennials have been touted as a distinct generation who have high-expectations of their future employers. Significant research has been conducted regarding the need for companies to adjust traditional management styles and corporate policies to better align with the needs and desires of this new generation of employees.
In September of 2008, PricewaterhouseCoopers interviewed graduates from 44 countries as part of its global “Millennials Survey.” The survey explored the long-term needs of millennial employees and revealed that:
- 91% of North American milliennials would consider leaving an employer whose behavior no longer met their corporate responsibility expectations
- 42% consider an organization’s climate change policy a deciding factor on whether or not to work for the organization
Since the fall of 2008, there have been significant changes in the economy. I wonder how high the millennial generation now holds the bar for future employers. How committed are they to working for companies whose values align with their own?
I fear the recent recession has significantly lowered upcoming graduates’ expectations of their future employers. Rather than focus their efforts on finding a company whose values and initiatives fit with their own belief system, they are settling for any company who offers them a paycheck. Many have likely seen their own relatives and friends experience pay cuts and job losses over the past year. Bearing witness to such events has understandably led many millennials to reprioritize their “company wish list”—with ability to pay my rent trumping involvement in corporate social initiatives.
We need to ask ourselves what we can do as educators, managers, parents, and friends to challenge this new generation of workers to stay committed to their beliefs. We need to encourage them to look beyond the financial offer they receive and critically assess who is signing their future paycheck.
March 26, 2010
Microlending…enabling global entrepreneurship
Recent economic times have spurred uncertain thoughts and reactions around terms like “lending” or “investments.” However, there is an emerging loan market that is working toward making a positive, significant impact on the lives of the impoverished globally. The market that I am referring to is the “microlending” market. Recent reports have estimated that there are more than 30 million microloans worldwide and at a growing rate of 30-40% per year.
So, why are so many individuals participating in microlending…
It has been estimated in developing countries that 50% or more of individuals are self-employed. However, there is a substantial disparity between the number of self-employed individuals and those who have access to bank loans. This lack of access to proper funding creates major barriers for micro-business owners in developing nations. Therefore, there is a great need to help self-employed individuals establish and maintain sustainable businesses.
Microlending initiatives are developed to help bridge this gap and provide impoverished individuals access to business loans that they would otherwise not have access to. Ultimately, these loans can serve as an impactful way to help empower individuals, create jobs, and generate new economic cycles for markets in need.
Additional benefits to microlending include:
- Small loans can make a significant difference in helping impoverished individuals launch entrepreneurial businesses (microloans are typically less than $1,000 in developing markets)
- Many microcredit programs report repayment rates of between 95 and 100%
It is essential to recognize that not all microlending programs are the same. Therefore, it is recommended to research how loan recipients are selected and monitored and how repayment rates are established. It is also important to understand whether loans are dispersed to individuals (typically called “peer to peer”) or projects (“peer to project”). The following organizations and sites provide useful information and insight on microlending.
- PBS “To Our Credit”- http://www.pbs.org/toourcredit/home.htm
- Consultative Group to Assist the Poor (CGAP)- http://www.cgap.org/p/site/c/about/
- The MicroCredit Summit- http://www.microcreditsummit.org/
This is the first in a series of posts on microlending. Future posts will include profiles of microlending initiatives, success stories and creative ways to get involved.
March 1, 2010
Toyota: Forgotten Principles
Last week Toyota’s president, Mr. Akio Toyota, testified before U.S. Congress regarding the company’s global recall. Mr. Toyota repeatedly apologized for the recall of millions of cars, offering to take personal responsibility for what had happened. As part of his testimony, Mr. Toyota stated that the company lost sight of its priorities, growing too large too fast. He claimed the company’s original priorities were safety first, quality second and volume third. However, over the years these priorities became scrambled, resulting in volume toppling safety.
This situation is a reminder that during times of growth organizations should continually review their founding principles and mission. This can help to ensure that an organization’s current strategy does not lead it down a path it does intend nor desire. Such an exercise may have helped Toyota keep its priorities in proper order.
Published on the Toyota Worldwide website is a set of “7 Guiding Principles.” Principle #3 states: Dedicate ourselves to providing clean and safe products and to enhancing the quality of life everywhere through all our activities. Interestingly, none of the principles mention anything to the tune of “sell more cars than anyone else.” Additionally, Toyota North America’s mission statement reads: To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America. Again, the mission is not about volume—rather it is about value and customer satisfaction.
While I do not intend to over-simplify Toyota’s situation, it may have benefited the company to revisit its mission and principles, making sure that its actions aligned with their words. Unfortunately, Toyota is not the first, nor will it be the last organization, to lose sight of its founding intentions due to growth. Company mission statements and principles serve minimal value if they are not upheld.
Does your organization’s current strategy and actions align with its mission?
February 17, 2010
Why Transparency Matters…Impacting Reputation
What does it mean to be a transparent organization? While transparency includes honesty, it is more than just telling the truth when asked. Transparency at its best involves pro-actively communicating with stakeholders (consumers, suppliers, employees, shareholders, etc) on all aspects of business. Being transparent does not mean one has to reveal confidential information or give away company secrets. Rather, it can entail explaining an organization’s motives, responsibly alerting customers to potential product risks or setting expectations with employees.
Why does transparency matter? Importantly, transparency can make a significant impact on a company’s reputation and ultimately their bottom line. Pro-active communication can foster greater trust with consumers, employees and suppliers—enabling them to give an organization the benefit of doubt in tougher times. Transparency is not about being “nice” to stakeholders or doing what “feels good”—it serves a critical business purpose.
Edelman Public Relations recently released its 10th annual Trust Barometer, a global survey of nearly 5,000 adults. This year’s study reveals “trust and transparency are as important to corporate reputation as the quality of products and services.” When survey respondents were asked about factors that contribute to a company’s overall reputation, transparent and honest practices rise to the top of the list. Interestingly, financial returns are at the bottom of the list. (Disclosure: I am a former employee of StrategyOne, a Daniel J. Edelman company.)
Transparency is critical for all types of organizations and activities, as even the best-intentioned efforts can cause stakeholders to question a company’s motives if they are not clear. Most recently, the Chase Community Giving contest was called into question because of lack of transparency around contest rules and the winner selection process. This example demonstrates the degree to which today’s consumers are evaluating the companies they engage with.
Becoming a truly transparent organization is easier said than done. Transparency is deeply linked to a company’s corporate culture. Leaders need to set the tone at the top that transparency is fundamental and create environments in which employees are applauded for coming forth with information and potential risks. Executives and employees need to feel comfortable identifying potential shortfalls or errors in the system and not be afraid that it will put their job at risk. History has shown that fear of losing one’s job has led to significantly greater unintended consequences (e.g. company bankruptcy, deadly product recalls, etc).
How is your organization enabling and demonstrating transparent practices?
February 5, 2010
Tickets for Employee LUV
Today Southwest Airlines announced a new employee volunteer program- Tickets for Time (T4T). T4T puts a unique twist on corporate volunteering programs. Rather than simply match donations, Southwest is offering their employees the opportunity to “earn” tickets for nonprofit organizations of their choosing. For every 40 hours an employee volunteers, the benefitting nonprofit organization receives one free roundtrip ticket that can be used for fund-raising or transportation needs. Each nonprofit can receive up to 6 tickets each year!
This program is interesting for a few reasons:
- T4T encourages employees to actually engage with nonprofit organizations through hands-on volunteering activities
- The incentive for volunteering is to pay the reward forward…to the nonprofit (compared to say “volunteer 40 hours and earn a ticket for yourself”)
- The program aligns with Southwest’s mission to provide their employees “a stable work environment with equal opportunity for learning and personal growth.”
This is not Southwest’s first step into corporate volunteering programs. The airline maintains the Share the Spirit program that encourages employees to embrace local charities and nonprofits. In 2008 20,490 volunteer hours were reported.
Interestingly, Southwest also announced last month its 37th consecutive year of profitability. Despite facing an extremely touch economic environment, Southwest has managed to stay focused on running a profitable and socially responsible business. Maybe others in the airline industry (and beyond) can take a page from the Southwest playbook…
February 2, 2010
CSR Goals, Reporting and Unethical Behaviors
My recent reading of Dan Pink’s Drive has sparked some interesting thought around the purpose, benefits and unintended consequences of goal setting. Traditionally in the business world, managers set goals and expect their employees to work toward them. Typically the purpose of goals is to provide focus for employees and provoke progress. However, goal setting can have a dark side and lead to stress, irrational thoughts and potentially unethical behavior.
Why I am posting about this? More and more companies are developing and publically sharing annual Corporate Social Responsibility (CSR) reports. Included in these reports are goals such as “we will reduce our packaging by X% by 20xx” or “we will eliminate the use of X product over the next year.” Upon first glance these goals sound great. They provide focus and give companies (and often their suppliers) something to work toward. However, these goals might also hinder progress. Two thoughts…
- Such goals put pressure on executives and managers to deliver promised results to stakeholders. They want to publish in next year’s CSR report that the company accomplished the stated X% reduction in packaging. However, this pressure may lead some executives to unethical behavior and greenwashing practices. Executives may get “creative” with the numbers, giving stakeholders the illusion that stated goals were met. It is easy for companies to become overly focused on short-term progress and ignore the long-term practices that they should be implementing (sound similar to profit reporting traps…).
- The second issue is that stating a goal in terms of “reducing by x%” may put up an unintentional wall. For example, managers and employees might become so focused on reducing packaging by 15% that they become blind to creative solutions that could actually reduce packaging by 25%. They feel they have won the race when they meet the 15% reduction when they potentially could have won a race for 25% reduction.
I am not suggesting that CSR reports should not include the development and tracking of goals. I believe that when appropriately stated and incentivized, goals can be powerful in leveraging success. However, I think there is reason to examine and challenge how CSR goals are written. I am curious to learn more about the progress of companies related to how they state and report their CSR goals. Maybe a future research study and discussion…
January 26, 2010
What Makes a Company a “Great Place” to Work?
On Monday FORTUNE announced its annual “100 Best Companies to Work For” list. This year’s winner is SAS, a business analytics software and services company that offers employees high-quality child care, a free 66,000-square foot fitness center and a lending library. Edward Jones, Wegmans and Google also make the top of the list—recognized for stable employment and strong stock-option programs.
So, what makes a company a “great place” to work? Technically, FORTUNE develops the list in conjunction with the Great Place to Work Institute. A company’s score is based on the results of the Institute’s Trust Index Survey and the Institute’s Culture Audit. However, detailed information on these metrics is not publicized; rather, what gets the most attention are the “perks” companies boast. FORTUNE has even developed a “perkfinder” tool that allows you to identify companies based on the benefits of healthcare, childcare, work-life balance, telecommuting, sabbaticals, gyms and gay-friendly policies. For example, if I was in the market for an employer that offers 100% healthcare, telecommuting, a compressed workweek and an on-site gym, Microsoft or Qualcomm would be right-up my alley.
Many of these perks are great to have, but what if I am looking for a company that also prides itself on CSR reporting, social initiatives or green workplace practices? I did some digging and a number of “best company” type of lists recognize green, sustainable and ethical workplaces.
- Working Mothers “Best Green Companies for America’s Children”
- Ethisphere’s “World’s Most Ethical Companies”
- Oregon Business “100 Best Green Companies”
- Global 100’s “Most Sustainable Corporations in the World”
With rising interest in corporate sustainability and triple-bottom line initiatives, I think it would be valuable for FORTUNE to include and publicize a wider set of criteria for scoring the best places to work. Maybe next year the perkfinder will include benefits such as corporate volunteer programs, environmentally friendly offices and charitable giving.
January 22, 2010
Making Ethical Decisions and Taking Professional Risks
As an avid news junkie, I have been glued to the CNN Haiti Earthquake coverage. In particular, I can’t get enough of Anderson Cooper and Dr. Sanjay Gupta. While they were sent to Haiti as reporters for CNN, they have taken their involvement to the next level.
Since arriving on the scene, both men have gone above and beyond their “journalist responsibilities” and dived into helping the people of Haiti. Dr. Gupta has repeatedly said that first he is a doctor, second he is a journalist. He has performed multiple surgeries on seriously injured victims of the earthquake. On January 16th @sanjayguptacnn tweeted, “So sorry to not anchor my show today. couldn’t break away from the field hospital. if #cnn doesn’t fire me, promise to do the show tomorrow.” Similarly, Anderson Cooper has been lending a hand far beyond his microphone. This afternoon @andersoncooper tweeted, “trying to find Monley…the 5 year old boy pulled out of the rubble two days ago..want to see how he is doing.”
I think this raises an interesting question of ethics and taking risks to do what one believes is right. Followers of traditional journalism might consider the actions of Dr. Gupta and Anderson Cooper as controversial- believing journalists should cover stories, not be part of them. Yet, at the risk of their professional credibility both men took it upon themselves to take greater action and engage in the situation as a doctor and a humanitarian. Only time will tell, but I think these risks will prove fruitful for both men (as well as for those they have helped!).
Everyday business professionals find themselves in situations where they need to prioritize the many “hats” they wear—as employees, as parents, as community members, etc. Too often we default to our “employee hat” at the risk of being fired, even is this means going along with a decision that we are not 100% comfortable with. It is easy to get caught-up in short-term incentives, such as higher profits or job promotion, and neglect more rewarding long-term outcomes. I challenge you to ask yourself, “when is the last time I put my professional credibility at risk to stand-up for something I believe in?”
January 20, 2010
Re-examining ROI
The start of the new year often comes with the launch of new corporate programs and brand initiatives. Any smart manager knows they will eventually need to answer the question, “what was the return on investment (ROI)?” And, a “good” answer is typically X% increase in sales for every X dollar spent on the program.
Encouragingly, more and more of these new initiatives are socially oriented. Most recently, Pepsi announced its decision to bail on traditional Superbowl spending and instead launch the “Refresh Project,” a grant program developed to fund new ideas. The question is, how will Pepsi prove it made the right decision? As more companies venture into social spaces, managers face the challenge of calculating traditional ROI figures in proving the value of these programs. Executives want reassurance that an investment in a socially oriented program is a smart one for their business. If they are not convinced, such programs are at risk of being cut.
Let me be clear that I think it is extremely important for companies to measure the impact of their social involvement. I do not believe companies should launch a social initiative just because it “feels good.” Social programs, like any other corporate or brand program, need to prove their worth. However, I would challenge managers to create trackable metrics beyond sales figures that prove the worth of such programs. This means examining the impact of social programs on all of their company’s stakeholders. How did the program impact the company’s customers, employees, community, suppliers and shareholders?
The table below provides example metrics that managers can use to prove the value of social programs.
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Measuring Social Involvement |
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Remember, to track a metric you must benchmark it before the program launch- you will not know how far you have gone unless you know where you started!
Measurement is a critical component of any successful social program and a topic I will continue to discuss in future posts. Please consider this just the start of the conversation and I encourage you to comment on your thoughts and experiences.
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